Chancellor Olaf Scholz’s (SPD) diary is full this Monday: at half past half in the morning he visits the family fund in Berlin-Brandenburg, at eleven he meets the NATO Secretary General, around half past one he gives a speech at Industry Day and at At 6 p.m. he welcomes the Chinese Prime Minister. In between, however, he will still have to find time for another guest: Intel boss Pat Gelsinger.
On Friday, the deputy government spokesman confirmed that the CEO of the American chip group would be in Berlin on Monday and would meet the chancellor. What is at stake is obvious: the planned location of a chip factory in Magdeburg – and how much the German state is subsidizing for it. Scholz himself only said on Friday: “I can confirm that we have been in good talks for a long time and that we will continue them on Monday.”
Magdeburg was awarded the contract for the settlement over a year ago. Originally, subsidies of 6.8 billion euros were promised. In the meantime, however, Intel is apparently assuming a significantly higher investment sum – 27 instead of 17 billion euros – and is therefore demanding more money. Finance Minister Christian Lindner (FDP) was against, citing a lack of budgetary funds, Economics Minister Robert Habeck (Greens) in favor. Now Intel is said to be getting 9.9 billion euros. First had that Handelsblatt reported on the total.
The EU wants to reduce dependency on semiconductor technologies
A chip factory with about 3000 jobs is planned in Magdeburg. The interest of the government goes beyond the usual considerations of structural policy. “The goal of the federal government is clear,” said a spokeswoman for the Ministry of Economics recently, “we want to strengthen Germany as a microelectronics location.” This is of great importance for the transformation and technological sovereignty. She didn’t want to say anything about numbers because talks were still ongoing, but she pointed out that the type and amount of funding were determined by the criteria of the European Chips Act.
With the European Chips Act, the EU is pursuing the goal of reducing dependency in the field of semiconductor technologies. By 2030, European production capacities for microchips are to increase from ten to 20 percent of the world market. 43 billion euros in public and private investments are to be mobilized for this purpose.
“If Intel’s major investment in Magdeburg is now sealed, that is a strong sign of Germany’s competitiveness as a business location,” said SPD parliamentary group leader Achim Post Süddeutsche Zeitung. It is correct that the government “strongly supports” the production of future technologies. That applies to Intel in Magdeburg as well as to Thyssenkrupp in Duisburg. The latter concerns the construction of a “direct reduction plant” for climate-friendly steel production. State aid should also flow for this.